Proceedings of the 5th International Conference on Economics, Business and Economic Education Science, ICE-BEES 2022, 9-10 August 2022, Semarang, Indonesia

Research Article

The Influence of Capital Structure on Company Value with Financial Performance as a Mediation Variable

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  • @INPROCEEDINGS{10.4108/eai.9-8-2022.2338670,
        author={Retnoningrum  Hidayah and Anas Tasya Givia Ratri},
        title={The Influence of Capital Structure on Company Value with Financial Performance                as a Mediation Variable},
        proceedings={Proceedings of the 5th International Conference on Economics, Business and Economic Education Science, ICE-BEES 2022, 9-10 August 2022, Semarang, Indonesia},
        publisher={EAI},
        proceedings_a={ICE-BEES},
        year={2023},
        month={11},
        keywords={capital structure company value financial performance},
        doi={10.4108/eai.9-8-2022.2338670}
    }
    
  • Retnoningrum Hidayah
    Anas Tasya Givia Ratri
    Year: 2023
    The Influence of Capital Structure on Company Value with Financial Performance as a Mediation Variable
    ICE-BEES
    EAI
    DOI: 10.4108/eai.9-8-2022.2338670
Retnoningrum Hidayah1,*, Anas Tasya Givia Ratri1
  • 1: Universitas Negeri Semarang
*Contact email: retnoningrum.hidayah@mail.unnes.ac.id

Abstract

This study determines the effect of capital structure on company value with financial performance as a mediating variable. The declining value of Gross Domestic Product (GDP) indicates that the economic condition is not significant enough. This is a result of the level of investment that is still weak. To be able to increase the value of GDP, the enthusiasm of industry players must remain high and companies must be more competitive to increase the value of their companies. The population of this study was manufacturing companies from various industrial sectors listed on the Indonesia Stock Exchange from 2017-2020 and the selection of the company used the purposive sampling technique. Data analysis used descriptive statistical analysis and the Structural Equation Model with the help of SmartPLS 3.0. The results of this study showed that capital structure did not affect company value but influential financial performance. The financial performance had a positive effect on company value and able to mediate between capital structure and company value. For further research to add other indicators so that investors have more considerations so that their investment decisions are right.